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Friday 26 November 2021

kyndryl declines in Q3

KDkyndryl’s third quarter results did not deliver any major surprises. Pro forma revenue (constant currency) in three months to end September was down 5.5% (to $4.5bn) on last year. However, the pro forma adjusted EBITDA margin improved from 14.8% to 15.8%.

It’s important to not look at that revenue line performance in isolation. kyndryl has major plans in place to move into an expanded market opportunity, enrich its partner ecosystem (e.g., the new global strategic partnership with Microsoft), and grow into more margin rich services. To be clear, the road ahead will be tough, but kyndryl’s leadership is targeting improved margins (through an improved revenue/geographic mix, automation, and cost control) and a return to revenue growth in the “medium term”.

kyndryl separated from IBM and began trading on the NYSE on the 4th November, but it has been a challenging time for the share price so far. For FY21, the firm’s guidance is for a pro forma constant currency decline of 5-6% and a pro forma adjusted EBITDA margin of 15.0-15.7%.

Posted by: Kate Hanaghan at 09:30

Tags: results  

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Friday 26 November 2021

Blue Prism agrees to improved Vista bid

blue prismThe auction for RPA specialist Blue Prism seems to be heading Vista Equity Partners way, with directors unanimously recommending shareholders vote in favour of an improved £1.22bn deal at meetings scheduled for the 9th of December.

Technology holding company, SS&C had of course entered the race last week (see here), with a rival £1.2bn offer (trumping Vista’s initial £1.1bn bid) and received support from activist investor Coast Capital, which claimed that the Vista deal “vastly undervalues” the company.

Whilst this saga may have further twists and turns to play out, Vista’s plan to date has been to fold Blue Prism into another company it owns, Tibco, which the firm acquired in 2014 for $4.3bn and remains in the driving seat. At the time of writing shares in Blue Prism are up 6% this morning to £12.92 but still a long way down on its £25.60 high of September 2018.

Posted by: Marc Hardwick at 09:05

Tags: acquisition   RPA  

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Friday 26 November 2021

*UKHotViewsExtra* Technology skills are key to improving UK productivity

graphicLast week the Resolution Foundation and the Centre for Economic Performance at the London School of Economics (LSE) published a report on productivity in UK firms, the first in a series examining the readiness of the UK private sector for the challenges of the next decade. This first report can be accessed in full here.

It is widely understood that driving up productivity is fundamental to continued improvements in living standards. And yet the UK continues to perform badly against other major economies on productivity measures. The report explores the reasons for this poor performance and examines how policies to remedy it can best be targeted.

Ultimately the success or otherwise of UK efforts to increase productivity will depend on the extent to which innovation and adoption of new technologies can be encouraged. There are a variety of ways in which both government and private sector can stimulate the required investment - but one of the most essential tasks must surely be to equip young people with the education and training they need to pursue careers in STEM subjects, including IT.

TechMarketView has long advocated action to address the country's IT skills shortage, for example in our coverage of the March 2021 Learning & Work Institute report on that topic. The Resolution Foundation/LSE report brings a welcome new dimension to the skills debate and we cannot fail to draw a clear conclusion: unless the UK can train more young people in IT and other STEM skills and encourage them into careers in those sectors, continued improvements in our living standards will become harder to achieve. It is imperative that both government and the private sector take action.

HotViewsExtra subscribers can read a more detailed analysis of the Resolution Foundation/LSE report and our views on its links to IT skills here.

Posted by: Tania Wilson at 08:41

Tags: skills   productivity   start-up  

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Friday 26 November 2021

Vantage Health successfully pilots teledermatology solution

Vantage HealthHealthcare technology business Vantage Health has piloted a new teledermatology pathway solution at East Suffolk and North Essex NHS Foundation Trust (ESNEFT).

The technology is intended to accelerate the diagnosis of skin lesions and tackle the growing pressures on two week wait (2WW) referrals at the Trust. It allows 2WW cases referred via the NHS e-Referral Service (eRS) to be triaged remotely by consultant dermatologists using Vantage Health’s Rego platform.

Consultants can review digital images and patient history alongside the referral to determine if a patient needs to be on the 2WW pathway or if the severity can be reduced to a routine referral. If it is decided that the referral should be downgraded, an automatic request is sent via Rego to the referring GP asking them to approve the case as a routine referral.

The pilot ran from the beginning of January through to May this year. It resulted in 93% of the 96 cases being triaged in one day, with 50% of the total number being downgraded to either a routine referral or not requiring hospital treatment. The solution has been well received by GPs.

Vantage was founded by David Ezra and Adiel Benyahu in 2006. Its AI-powered Rego solution is designed to transform the referral process, helping operationalise care pathways, reduce waiting times and improve patient outcomes. It was acquired by NEC Software Solutions UK (NECSWS) in June 2021.

In 2019-20, Hospital Episode Statistics show there were three million dermatology outpatient appointments in England. The pandemic has increased the pressure on dermatology services and the backlog of patients seeking outpatient appointments. Earlier this year NHSX invested nearly £5m to equip and train staff in teledermatology. By managing the demand for dermatology services through the use of digital technology, such as that offered by Vantage Health, capacity can be released and patients can get the most appropriate and timely treatment.

Posted by: Dale Peters at 07:01

Tags: nhs   healthcare   covid-19  

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Friday 26 November 2021

£70m extension takes CGI’s PND contract to 2026

CGI logoThe government has published details of the extension to CGI's Police National Database (PND) contract. Awarded back in April 2021, the extension runs for five years, taking it to the end of March 2026, and has a value of £70m.

The PND stems from the recommendations of the 2004 Bichard Inquiry, which followed the Soham murders two years earlier. CGI (Logica) signed its original seven-year £76m contract in 2009, with the PND launching in 2011. It signed a three-year extension in 2016, which saw CGI disaggregate relationships with other suppliers involved in PND delivery and make a series of enhancements, including data visualisation technologies. The contract was extended again in 2018, taking it out to 2021.

The PND collates soft intelligence from local police records. It is used by all 45 territorial forces in the UK, as well as a 18 other organisations, including the National Crime Agency, Disclosure and Barring Service, and the ACRO Criminal Records Office. It contains more than four billion records based around the POLE (People, Objects, Locations, Events) data model.

In 2016, the Home Office launched the National Law Enforcement Data Programme (NLEDP) to replace both the PND and Police National Computer. The programme was reset in December 2020, resulting in the PND being removed from the project scope (see NAO highly critical of National Law Enforcement Data Programme). The PND is now intended to be maintained as a standalone system until 2031.

With the delays to NLEDP and the subsequent reset, an extension to CGI's contract was expected. The latest deal takes the managed service contract out to 2026 and further cements CGI's focus on growing its public safety and policing business.

Posted by: Dale Peters at 07:00

Tags: contract   police   data  

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Friday 26 November 2021

LAST CHANCE TODAY to get your sustainability solution on TMV's radar!

REGISTRATIONS CLOSE TODAY, FRIDAY 26TH NOVEMBER

logologoTechMarketView is helping Edinburgh-based digital ledger technology platform supplier, SICCAR, find new partners looking to create trustworthy, ready-to-deploy enterprise-class sustainability solutions.

All you have to do to get on our radar is to register for a 30-minute online chat with SICCAR via the online registration form at www.techmarketview.com/meetsiccar by close of business today, Friday 26th November.

We’d like to hear from:

  • Independent Software Vendors (ISVs) developing new sustainability solutions or looking to upgrade existing solutions with a secure digital ledger technology platform.
  • Consultancies providing custom sustainability solutions to customers that require high-integrity data sharing across connected enterprises.
  • Systems integrators responsible for creating and integrating a digital ledger technology-based sustainability solutions into customer application ecosystems.

We will give a mention on UKHotViews in early December to all companies fitting the brief that register for a ‘Meet SICCAR’ session. What a chance to get your company’s name known in the marketplace!

There’s more detail on our website at https://www.techmarketview.com/siccarpartners/ including a downloadable flyer.

Please register by 6pm TODAY to assure your online meeting slot and ‘shout’ on UKHotViews.

SICCAR is a blockchain-based data sharing platform that integrates seamlessly with existing applications and infrastructure. SICCAR gives enterprises full control over how data is shared and used across their business ecosystem by enabling them to extend rules on shared data to external organisations. SICCAR is trusted by the Scottish Government, Baillie Gifford, RSM International, Scottish Power, and many other private and public sector enterprises.

Posted by: Anthony Miller at 06:00

Tags: tipp  

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Thursday 25 November 2021

*UKHotViewsExtra* Mastek: Significant healthcare win to support NHS transformation

Mastek logoMastek has won a significant healthcare contract, which positions it at the heart of a critical program focused on the wellbeing of citizens. The deal, with NHS Digital, is valued at £45m over the four-year period from October 2021 to October 2025. The programme in question is the Cumberland Programme, which addresses the Secretary of State for Health and Social Care’s strategic requirements to ensure patient safety for the use of medical devices and implants.

UKHotViews Premium logoTo read more about the Cumberlege Programme and Mastek’s role in its delivery, TechMarketView subscribers can read our UKHotViewsExtra article – Mastek: Significant healthcare win to support NHS transformation. If you don’t know how to access the article, please contact Deb Seth.

Posted by: Georgina O'Toole at 14:35

Tags: contract   health   data   development   healthcare   Solutions   public+sector  

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Thursday 25 November 2021

Raise your profile at An Evening with TechMarketView 2022

TMV Evening Sponsorship BrochureWe are very much looking forward to the return of our popular flagship event – An Evening with TechMarketView – in 2022! Eagle-eyed UKHotViews readers may already have saved the date, 22 September 2022, in readiness for an evening of analyst insight and high-quality networking over drinks and dinner at the prestigious Royal Institute of British Architects (RIBA) building in London. After a two-year pandemic-induced break, we can’t wait!

Now is also the perfect time to consider sponsoring the event, particularly if your organisation is looking to raise its profile in the UK tech market over the next year. Our sponsorship packages offer a range of opportunities to become involved and by early engagement you achieve maximum exposure through continuous promotion in UKHotViews and on social media in the run up to next September, as well as at the event itself of course. 

Check out our Sponsorship Brochure for the detail on all the packages available and get in touch with Deb or Paula to express your interest. 

Posted by: HotViews Editor at 14:00

Tags: event  

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Thursday 25 November 2021

Shearwater revenues continue to slide

ShearwaterShearwater Group, the specialist cyber risk consultancy, has published interim results revealing a continuing decline in revenue, in contrast with significantly improved profitability. Revenue for the six months to 30 September 2021 was down 5.3% at £10.6m as the firm was hurt by the ongoing underperformance of its services arm. Gross profit rose by 11% to £4.1m whilst services revenue was down 7% to £8.7m and software revenue up 1% to £1.9m.

Shearwater has been struggling to address its revenue decline for some time. The company closed out its previous fiscal down 4%, as the pandemic hampered the company’s recovery (see: Strong H2 indicates Shearwater recovery). Whilst Shearwater’s fortunes did improve in the second half of its previous financial year, turnover appears to be proving a challenge once again.

Shearwater’s lacklustre performance is at odds with the strong growth occurring in the cyber security market. The sector is experiencing something of a boom, amid high demand off the back of accelerated digital transformation initiatives. Whilst management has indicated that timing issues are largely to blame, growth elsewhere indicates that significant opportunities are likely to exist in the marketplace.

Posted by: Jon C Davies at 09:50

Tags: ShearwaterGroup  

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Thursday 25 November 2021

Royalty management player Synchtank gets more dosh to do the rights thing

logoGiven the multitudinous ways we consume music nowadays, you might imagine that ensuring everyone in the value chain – from composer to publisher to performer – gets their ‘just reward’ is a rather complex challenge.

This is something that Synchtank has been doing for over a decade with its software for managing music assets, rights, and royalty administration. Headquartered in London, and with offices in New York and Los Angeles, Synchtank has raised $5.8m in a Series A funding round led by Octopus Ventures, with participation from existing management and shareholders. Synchtank previously raised $650k in seed funding when it launched in 2011 and a further $750k early last year.

Synchtank mixes with all the right people, from independent labels and publishers through to global enterprises such as Warner Music, NFL, Vice, and Hollywood studios among many others. Its product set comprises the eponymous asset, rights and metadata management platform, and recently released IRIS, which handles copyright registration, royalty collection and accounting.

The received wisdom is that global music industry revenues could reach over $140b by the end of the decade, almost double the value in 2019. Not surprisingly then, media rights management is attracting much interest from ‘stakeholders’ such as Pink Floyd drummer – and prolific tech investor – Nick Mason, who's backing social media music licencing startup Lickd (see Floyd drummer helps Lickd get video music licencing licked). Coming at it from a different angle is Audoo, which has developed a meter that plugs into commercial establishments and takes a digital imprint of the music which is sent to the relevant performing rights organisation (see Audoo looks to the crowd to top up £1.5m funding round).

There’ll be others, and undoubtedly Synchtank will aim to plug them in to make sure the right people get the right cut.

Posted by: Anthony Miller at 09:32

Tags: funding   startup  

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Thursday 25 November 2021

Mid-market demands drive Node4 growth

nodCloud and Managed Services Provider, Node4, has undertaken some research into the UK mid-market (where it is focused), which has highlighted the need for players such as it to drive forward technology adoption.  

The research underlines that UK buyers in the mid-market will increasingly turn to Node4 and peers such as Pulsant, Digital Space, iomart and Six Degrees for managed services, including greater use of cloud. With IT departments often being relatively small, outside expert help is often essential.

The research not surprisingly also highlighted the need for greater investment in cyber security, especially considering the fact that so many mid-market firms hastily rolled out cloud-based services during the earlier phase of the pandemic. indeed, revisiting those and ensuring their resiliency is a task not just for the mid-market but organisations of all shapes and sizes. However, almost half of respondents to the research said their current IT budgets were not currently sufficient to meet their aspirations.

Node4 has been performing strongly, with the top line buoyed by both acquisitions (Starcom was the last one within its financial year to end March 2021, but there have been more since) and strong organic growth. Indeed, in the current financial year, that organic growth rate is expected to hit 17-20%, with revenue exceeding £100m.

Posted by: Kate Hanaghan at 09:30

Tags: cloud   managedservices   mid-market  

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Thursday 25 November 2021

ActiveOps enjoys strong growth in H1

ActiveOpsActiveOps published its interim results for the period ending September 30th and show the Operations Management automation specialist putting on strong growth in the first half of the financial year. 

ActiveOps, which completed its IPO earlier this year (see: ActiveOps confirms IPO), saw total revenue for the first half grow 22% to £11.5m (H1 2020 £9.4m). Broken down by service line software and subscriptions grew 12% to £9.6m (H1 2020 £8.6m), whilst training and implementation grew 137% to £1.9m (H1 2020 £0.8m) benefiting from a Covid-19 bounce back. Annual Recurring Revenue (ARR) was particularly positive up 16% to £19.8m (H1 2020 £17.1m). Gross margin is ahead of expectations at c.80% (75% was expected) and the business made an adjusted EBITDA loss of -£0.2m (H1 2020 £0.1m).

ActiveOps's customers are predominantly in the banking, insurance BPO sectors and include the likes of Nationwide and DXC Technology. The company provides Management Process Automation (MPA) software that is designed to support complex and global back-office operations and has been benefiting from clients moving to remote and hybrid working where “line of sight management” notoriously struggles. 

Another positive set of results from the AIM-listed business points to a healthy upward curve as the business also looks to grow its operations outside the UK, notably in the US and Australia.

Posted by: Marc Hardwick at 09:22

Tags: results   operations  

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Thursday 25 November 2021

Access Group builds up legal division with Legal Bricks

The Access GroupAccess Legal, the lawtech division of The Access Group, has acquired the Legal Bricks group of companies – a provider of conveyancing searches and property related services to the legal sector – as it works towards its vision of creating a digital workplace for law firms. 

Formed in July 2020, Access Legal is a relatively new division that was created following the acquisition of Eclipse Legal Systems from Capita, and DPS Software. Access Group had a footprint in the legal sector prior to these acquisitions but it was horizontally focused; with DPS Software and Eclipse it moved into the specialist legal territory of case and practice management. The 2021 Oosha acquisition continued to add breadth and depth.

Founded in 2017, West Midlands-based Legal Bricks offers solicitors a customised online property search platform to simplify and speed up the conveyancing process. It also provides a suite of conveyancing and anti money laundering products, which aim to reduce law firm dependencies on the use of multiple systems, resulting in quicker and more transparent processes. Access Legal aims to enhance the platform with online document production, customisable forms, and an e-signature application. The plan is to make Legal Bricks capabilities available along with the rest of the legal portfolio through its cloud based Access Workplace for Legal platform as it moves towards the goal of a single sign-on, single vendor, single solution.

Posted by: Angela Eager at 09:11

Tags: acquisition   software   legal  

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Thursday 25 November 2021

*UKHotViewsExtra* IEG4 secures LDC investment to scale the business

IEG4 logoThere’s exciting news for previous TechMarketView Little British Battler, IEG4, which will enable it to accelerate investment and continue its strong growth story (see IEG4 thrives in local government).

The UK headquartered company, which focuses on offering digital solutions to enable better and more streamlined services in the public sector, has secured a minority (30%) investment from mid-market private equity firm, LDC.

IEG4 has continued to grow strongly of late. In its current financial year (to end March 2022) it has, once again, been tracking against a revenue growth rate of between 25% and 30%, by expanding existing accounts (selling more products) and adding new logos (with the sales into councils increasing in size and scope).

TechMarketView subscribers can read more about IEG4’s current position, its strategy, and its plans to use the investment for both acquisitive and organic growth in our UKHotViewsExtra - IEG4 secures LDC investment to scale the business.

If you are not a subscriber, are unsure if your organisation has a corporate subscription, or would like to understand how you can access this research and more, please contact Deb Seth.

Posted by: Georgina O'Toole at 09:06

Tags: localgovernment   funding   investment   software   health   public+sector  

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Thursday 25 November 2021

Royal Marsden chooses Epic in £49m DHR deal

Epic logoThe Royal Marsden NHS Foundation Trust has become the latest NHS trust to sign a contract with US electronic patient record (EPR) system supplier, Epic Systems. The 9-year deal, which runs to October 2030, is worth £48.7m to Epic and was awarded via the NHS London Procurement Partnership framework as part of a partnership with Great Ormond Street Hospital.

The Royal Marsden announced in the summer that it had been exploring a digital health record (DHR) partnership with Great Ormond Street Hospital as part of its Digital Transformation Programme. The deal, confirmed this week, will see The Royal Marsden replace its current EPR with the Epic system in March 2023. The partnership between the two trusts will have benefits for both: The Royal Marsden benefiting from GOSH’s experience of implementing the DHR in 2019; and GOSH being able to do more, at a faster rate and lower cost, as the two trusts share work on future developments of the system.

For Epic Systems, the contract is the latest in a string of deals with NHS trusts that have seen it rapidly climb our rankings (see UK Health Supplier & Market Analysis). Indeed, in 2020, Epic won contracts worth just shy of £740m in the UK - with Manchester University NHS Foundation Trust, Health & Social Care Northern Ireland, Frimley Health NHS Foundation Trust and Guy’s and St Thomas’ NHS Foundation Trust. 2021 has, not surprisingly, been quieter in terms of contract awards, with Epic’s most recent deal prior to The Royal Marsden being a contract extension with Devon. Nonetheless, the evidence suggests that Epic has established itself as the system of choice for many large NHS hospitals looking for a ‘rip and replace’ digital health record.

Posted by: Tola Sargeant at 09:05

Tags: nhs   contract   software  

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Thursday 25 November 2021

FCA seeks vendor help policing crypto

FCAUK regulator, the Financial Conduct Authority (FCA) has launched a tender to identify a vendor specialising in digital ledger technology able to provide analytics services relating to crypto assets and blockchain data. The contract is initially worth £500k over a two-year period and includes the option of a further two-year extension. The deadline for applications is mid-day 12 December.

As part of its remit, the FCA is responsible for monitoring, approving firms involved in activities associated with crypto assets to ensure comply with regulations around financial crime, AML and counter terrorism. To fulfil this obligation, the FCA is looking for a specialist third-party service provider to help scrutinise crypto asset data.

It is not surprising the FCA is looking for specialist help in this fast-evolving area of financial services. Criminal activity in the burgeoning crypto market has led to growing public concern. Fortunately, there are a variety of vendors helping to reinforce trust in the ecosystem and such offerings are increasingly attracting mainstream interest, as evidenced by the recent acquisition of CipherTrace (see: Mastercard steps up crypto plans with CipherTrace and Coinfirm to help police crypto).

Posted by: Jon C Davies at 08:52

Tags: blockchain   cryptocurrency   DLT   coinfirm   ciphertrace  

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Thursday 25 November 2021

Passionate backers relate to Attio’s new-age CRM

logoWhat caught my restless eye in the media this morning was this: “Launched in early 2021 … (t)he platform is being used by hundreds of paying customers including Coca Cola …”. Hmmm.

It turns out that the platform in question, ‘data driven’ CRM (aren’t they all?) Attio was incorporated back in 2017 as F Stack by which name it existed until October last year. Cofounder and CEO Nicolas Sharp didn’t appear to join F Stack/Attio till November 2019 having left his job as Investment Associate at Passion Capital in November 2016 (there’s a gap in his CV between those dates), and during some of which period he also acted as a due diligence consultant for Notion Capital. I can’t quite seem to join the dots.

Anyway, Attio announced that it recently raised $7.7m in a seed funding round led by Point Nine, with participation from Balderton, Headline, existing investors Passion Capital (of course), and ‘numerous’ Angels.

There’s much puffery surrounding Attio about ‘changing paradigms’, ‘customisable workspaces’ and the like, and perhaps Sharp and pals really have built the CRM equivalent of the proverbial ‘better mousetrap’. But what chance does Attio really have in a saturated market with dominant players – other than of course selling its technology to one of them!

Posted by: Anthony Miller at 08:45

Tags: funding   startup  

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Thursday 25 November 2021

ONLY TWO DAYS LEFT to get your sustainability solution on TMV's radar!

REGISTRATIONS CLOSE TOMORROW, 26TH NOVEMBER

logologoTechMarketView is helping Edinburgh-based digital ledger technology platform supplier, SICCAR, find new partners looking to create trustworthy, ready-to-deploy enterprise-class sustainability solutions.

All you have to do to get on our radar is to register for a 30-minute online chat with SICCAR via the online registration form at www.techmarketview.com/meetsiccar by Friday 26th November.

We’d like to hear from:

  • Independent Software Vendors (ISVs) developing new sustainability solutions or looking to upgrade existing solutions with a secure digital ledger technology platform.
  • Consultancies providing custom sustainability solutions to customers that require high-integrity data sharing across connected enterprises.
  • Systems integrators responsible for creating and integrating a digital ledger technology-based sustainability solutions into customer application ecosystems.

We will give a mention on UKHotViews in early December to all companies fitting the brief that register for a ‘Meet SICCAR’ session. What a chance to get your company’s name known in the marketplace!

There’s more detail on our website at https://www.techmarketview.com/siccarpartners/ including a downloadable flyer.

Please register by 6pm, Friday 26th November to assure your online meeting slot and ‘shout’ on UKHotViews.

SICCAR is a blockchain-based data sharing platform that integrates seamlessly with existing applications and infrastructure. SICCAR gives enterprises full control over how data is shared and used across their business ecosystem by enabling them to extend rules on shared data to external organisations. SICCAR is trusted by the Scottish Government, Baillie Gifford, RSM International, Scottish Power, and many other private and public sector enterprises.

Posted by: Anthony Miller at 06:00

Tags: tipp  

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Thursday 25 November 2021

Read more from our very own Wise Grey Owl...

UKHotViews

Find out how you can read more from TechMarketView’s Chairman, Richard Holway MBE, who describes himself as ‘Possibly the UK’s Oldest IT Analyst', with a subscription to our UKHotviews Premium.

Contact our team member Paula to find out more! 

Posted by: HotViews Editor at 00:00

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Wednesday 24 November 2021

Commercial sales propel Dell to another record quarter

Dell logoDell Technologies is breaking records again. Q3 revenue was up 21% to $28.4bn (Q3 2021: $23.5bn) with growth across all business units, customer segments and geographies. Operating income for the three months ended 29 October 2021, was up 19% to $1.3bn (Q3 2021: $1.1bn) and Non-GAAP operating income was up 5% to $2.9bn (Q3 2021: $2.7bn). This was the fifth quarter of record quarterly revenue and operating income.

Revenue for its Client Solutions Group (PCs etc) was up 35% to $16.5bn (Q3 2021: $12.3bn). As was the case in Q2, growth was particularly strong in the division's Commercial business, which was up by an impressive 40% to $12.3bn (Q3 2021: $8.8bn). Its Consumer business grew by 21% to $4.3bn (Q3 2021: $3.5bn). The company is benefiting from a combination of hybrid workers, the return to the office, and the introduction of Windows 11.

Revenue from its smaller Infrastructure Solutions Group (servers, networking and storage) was up by 5% in the quarter to $8.4bn (Q3 2021: $8.0bn). Servers and Networking revenue was up by 9% to $4.5bn (Q3 2021: $4.2bn) and, after a slight fall in Q2, Storage revenue returned to growth, up 1% to $3.9bn (Q3 2021: $3.9bn).

The results for this quarter include VMware, which was up 10% to $3.2bn (Q3 2021: $2.9bn); however, after Dell finally sold off its 81% majority stake in the company, Q4 results will only include VMware reseller revenue. See VMware waves farewell to Dell with 11% Q3 growth for further discussion.

The company has paid down a total of $15.9bn of debt year-to-date, including $2bn paid during Q3 and $9.4bn paid after quarter end. Core debt at the end of the quarter adjusted to include the $9.4bn payment stood at $17.6bn.

With the sale of VMWare, Dell Technologies is beginning to write the next chapter of its story. It believes it is uniquely positioned to thrive in the data and multi-cloud era and is placing a great deal of emphasis on its APEX portfolio of as-a-Service offerings. Last month it announced APEX Cloud Services with VMware Cloud, its first alliance with the newly independent VMware. The company is actively broadening its portfolio, including investing in new growth opportunities in telco and edge, but it needs to be careful it doesn't over complicate things after putting so much effort into simplifying its proposition. 

Posted by: Dale Peters at 09:57

Tags: results   storage   infrastructure   PCs   Q3  

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